Sovereign AI as the foundation for the journey towards Golden Indonesia 2045

Source: Empowering Indonesia Report 2025. An indication of global AI leadership comes from a country's ability to create and innovate on its own knowledge base, as reflected in the number of articles published on AI and the number of language datasets on Hugging Face that are unique to Indonesia. 

As part of the Asta Cita vision, the the Indonesian government aims to achieve up to 8% economic growth and high-income nation status by 2038, with the Indonesia Emas (golden Indonesia) scenario.

A key driver of this ambition is the advancement of sovereign AI. Recognising this potential, Indosat Ooredoo Hutchison, in collaboration with research and consulting firm Twimbit, has launched a report about the vital role of sovereign AI as a foundation for Indonesia’s digital economy and inclusive growth.

The Empowering Indonesia Report 2025 identifies five strategic pillars essential for achieving AI sovereignty: robust digital infrastructure, a sustainable AI workforce, a thriving AI industry, strong research and innovation capabilities, and a solid ethical and regulatory framework.

If executed effectively, the analysis concluded that sovereign AI could contribute up to USS140 B to Indonesia’s GDP by 2030, boost annual economic growth by up to 6.8%, and help the nation achieve high-income status as early as 2038 in the best-case scenario. The report also highlights that AI adoption could improve productivity up to 18% in services, 15–20% in manufacturing, and 5–8% in agriculture, making it a cornerstone of national competitiveness.

Nezar Patria, Vice Minister of Communication and Digital Affairs of the Republic of Indonesia said: “AI is not just about technology—it’s about national independence. AI sovereignty means developing technology that reflects the values of Pancasila, ensures ethical and secure use, and delivers benefits equitably to all Indonesians.”

From an infrastructure standpoint, the report notes that Indonesia will need US$3.2 B in investments by 2030 to meet national computing demands. Currently, the country’s AI data centre capacity represents less than 1% of the global market, highlighting the urgency to expand renewable-powered data centres and 5G network coverage. By 2030, data centre capacity is projected to reach 1.1 GW, with AI-related workloads taking up 18% of capacity.

The Empowering Indonesia Report 2025 also emphasises the need to cultivate 400,000 AI professionals by 2030, requiring US$968 M in investments for education, training, and upskilling. Only 0.06% of the total workforce in Indonesia are classed as AI talent, as opposed to Singapore (0.12%), India (0.21%) and China (0.26%). 

Indonesia is currently home to 364 AI startups with a combined US$1.08 B in funding, alongside national innovation initiatives such as Sahabat-AI V2—a 70-billion-parameter large language model (LLM) that supports Bahasa Indonesia and regional languages including Javanese, Sundanese, Balinese, and Batak. These developments reflect Indonesia’s shift from being a user of global AI technology to becoming a creator of it.

Manoj Menon, Founder and CEO of Twimbit added: “Indonesia is uniquely positioned to lead in the era of sovereign AI. By strengthening its digital foundations and fostering an inclusive ecosystem, the nation can emerge as a regional hub for AI growth and accelerate its journey toward Golden Indonesia 2045.”

Reinforcing Indosat’s role as a national partner in driving digital sovereignty and AI transformation, Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison stated: “AI sovereignty is not just about innovation—it’s about shaping a future that’s owned and led by Indonesia. Through strategic collaboration and continuous innovation, Indosat is committed to delivering inclusive connectivity and ethical AI solutions that empower every Indonesian.” 

According to the report, industry opportunities can be grouped into four main areas: 

- Quick wins: Solutions that deliver significant impact with fast implementation, such as understanding customer needs to personalise services. 

- Efficiency boosters: The use of AI for process automation, content creation, and pattern detection, which drives operational productivity improvements. 

- Operational enhancements: applications like data analysis that help optimise business decisions. 

- Strategic investment: Long-term innovations that have the potential to transform the industry landscape, including forecasting, decision support intelligence, and data analysis.

The Empowering Indonesia Report 2025 concludes with a call for cross-sector collaboration to build a sovereign AI ecosystem. By strengthening infrastructure, nurturing digital talent, and establishing ethical AI governance, Indonesia will be ready to move beyond adoption—to become an architect of a sovereign, inclusive digital future.  

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Download the report at www.ioh.co.id/empoweringindonesia